Thursday, 10 July 2014 21:15

Time out for PMA / ILWU contract talks


The PMA and ILWU agreed to take a 72 hour time out from USWC  contract negotiations this week to allow the union to attend “an unrelated negotiation” in the Pacific Northwest. This turned out to be the year long dispute with Columbia River Grain terminals, some of whom continue to lock out ILWU labor. On the plus side, the six year coastal contract, which expired July 1, was extended during the break through to Saturday July 12 and  operations at LA & LB were reported to have been largely unaffected by the Teamsters setting up  information pickets at terminal gates this week accusing harbor trucking companies of misclassifying drivers.

Thursday, 10 July 2014 21:14

COSCO to close US regional offices


Cosco Container Lines Americas has announced the closure of most regional offices in the U.S. in favor of a centralized North American Operations Center (location yet to be announced) which is to be opened in January 2015. As a consequence, offices in Boston, Charleston, Chicago, Henderson, New York, Norfolk, San Francisco and Seattle will close with most customer service and operation functions performed at the New Jersey headquarters also to be transferred. Offices in Houston, Montreal, Toronto, Vancouver and Long Beachare not affected.

Thursday, 10 July 2014 21:11

Richard Chappell chairs BCMEA

319 Chappell

We are pleased to congratulate Chamber of Shipping board member Richard Chappell on assuming the Chairmanship of the BCMEA for a two year term. Richard is the Regional Vice President Operations, Canada, for Westwood Shipping Lines and has served on the BCMEA board since 1997. Richard has been a board member at the Chamber since 2002 and was Chair of our board from 2008-2012.

Thursday, 10 July 2014 21:09

Saga and Westfal-Larsen form OHGC pool

319 Saga 319 Westfal

Saga Forest Carriers and Westfal-Larsen Shipping have announced an agreement to form a joint shipping pool which is to be managed by Saga Welco AS. Under the agreement, the open hatch fleets of Saga, Wesfal-Larsen subsidiary Masterbulk Pte Ltd. and Attic Forest AS (Hesnes Group) will be combined. The agreement will take effect in October 2014 and will be made up of 52 open hatch vessels and 2 new buildings for 2017 delivery. The head office will be located at Tenvik/Tønsberg, Norway and the senior management will consist of Mr. Lars Traaseth as CEO/President and Mr. Einar Didriksen as COO.

Thursday, 10 July 2014 21:08

Australian LNG seeking carbon tax relief

319 AustraliaLNG

The Australian government has confirmed plans to repeal a carbon tax introduced by the previous Labour government which requires about 350 major Australian companies to pay just over $20 for every ton of carbon emissions they produce.  From the outset, the Australian LNG industry has pointed out that it was the only LNG nation exporting into the Asia-Pacific region that was saddled with a carbon tax when LNG is seen as one of the cleanest fuels in the world. The tax so far has been at a fixedprice but there is a transition to a market-based emissions trading scheme in two more years if the tax is still in place.

Thursday, 10 July 2014 21:07

LNG new build keeping yards busy

319 LNG1 319 LNG2

A review of LNG carrier new build activity for the first half of this year reveals that approximately $4.6 billion has been invested in 23 new vessels. With 398 LNG carriers in operation, the global order book now stands at 128 ships averaging $200m each. There are 26 new LNG carriers scheduled for delivery this year, 39  in 2015, 36 in 2016, 24 in 2017 and so far two in 2018 and one in 2019. Amongst a flurry of LNG new build news this week involving Teekay, it was also announced that Mitsui O.S.K. Lines is to team up with the China Shipping (Group) Co. to operate the world's first regular LNG service through the Arctic (see map above right). The plan is to ship LNG from Russia's Yamal LNG project to markets in Europe and Asia using three ice class LNG carriers to be built by South Korea's Daewoo Shipbuilding & Marine Engineering (DSME) at cost of $990 million. 

Thursday, 10 July 2014 20:59

Nicaraguan canal plans not going away

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Confounding all of you doubters, the government of Nicaragua has approved plans for a new $40bn canal linking the Pacific and Atlantic. The plan $40 billion plan is being developed by HK Nicaragua Canal Development Investment (HKND Group), headed by Mr. Wang Jing of the Xinwei Telecom Enterprise Group. The proposed 278 kms long canal which would pass through Lake Nicaragua, Central America's largest lake, would be between 230 and 520 m wide and 27.6 m deep. Under current planning time-lines ground will be broken this year, construction would complete in 2019 and the new canal will begin operations in 2020. Nicaraguan officials say their waterway would "complement" the Panama Canal rather than be in direct rivalry to it. Nicaraguan President Daniel Ortega together with Mr. Wang Jing is pictured above right with signed agreements.

319 DutchTax

The EU has opened what it calls an “in depth investigation” to determine whether tax breaks for publicly owned Dutch ports, including Rotterdam, breach EU state aid rules by exempting them from payment of corporate tax on the basis that they are publicly owned. Earlier this year, Rotterdam which is the EU’s busiest biggest container port, claimed it is losing almost one million containers a year to its rivals, led by second- and third-ranked Hamburg and Antwerp, who receive “ unfair” subsidies from the German and Belgian governments respectively. The EU Commission said it has also told France and Belgium that it has concerns over the taxation regimes for their ports and has asked Germany to provide further information The Port of Rotterdam’s tax bill would increase by around €50 million ($68 million) if it is subject to corporate taxation.

319 WestCoastReduction

West Coast Reduction has completed Phase 2 of its Rail Unloading Improvement Project, increasing the number of railcars that can be unloaded simultaneously from 16 to 24. It is estimated that West Coast Reduction's canola oil handling capacity will increase by 50 per cent and this represents potentially an additional $270 million in exports.  The remaining phase involves upgrading the piping system between the pump house and the marine vessel berths and is scheduled for completion by March 2015.  

Marking the occasion were (pictured above) Transport Canada’s Parliamentary Secretary Jeff Watson, joined by West Coast Reduction President and CEO Barry Glotman, Director of Technical and Environmental Services, Ken Ingram and Director of Sales and Marketing Rob Jones, at West Coast Reduction.

Transport Canada has published the long-awaited amendments to the Marine Transportation Security Regulations in the Canada Gazette Part II, Vol. 148, No. 14 - July 2, 2014. These amendments will bring greater clarity and consistency for marine operators and include recent changes made to the International Convention on Standards of Training, Certification and Watchkeeping (STCW) for Seafarers.

Friday, 04 July 2014 09:05

BC Ferries announces LNG new builds

318 BCFerries1 318 BCFerries2

Big news this week from BC Ferries with the announcement of the award of a $165 million fixed price contract to build three intermediate class vessels in Poland. The contract has been awarded to Remontowa Shipbuilding S.A. of Gdansk and the vessels themselves will be dual fuel capable LNG or diesel for both main propulsion and generators. Two of the vessels are designated to replace the 49 year old Queen of Burnaby which services the Comox – Powell River route and the 50 year old Queen of Nanaimo which services the Tsawassen – Southern Gulf Islands route. The third vessel will supplement peak and shoulder season demand on the Southern Gulf Islands route in addition to providing refit relief across the fleet. Deliveries are scheduled from August 2016 to February 2017.The new vessels will be LOA 105 meters and will each accommodate 145 vehicles and 600 passengers. Well done BCF.

318 CableFerry

The BC Ferry and Marine Workers’ Union has failed in its bid to prevent BC Ferries from ordering a cable ferry to connect Denman and Hornby islands to Vancouver Island. BC Ferries has awarded a $15 million contract to Seaspan Shipyard for a 50 car and 150 passenger vessel for delivery in 2015. The Union had expressed concern to the BC Court of Appeal that the move would result in a loss of 15 jobs. The cable ferry will cut fuel expenses by about $2m per year on the 1.9km crossing which will be the longest such service in the world.

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